Another Big Rate Cut

The FED cut the Fereral Funds Rate 3/4 of a percent, to 2.25% today, in an effort to avoid a recession. With lower rates consumers are encouraged to spend and borrow more.

Some people think that as the dollar weakens with each cut we could see higher gas and food prices, and higher prices for imported goods. We will have to wait and see what affect this has on our economy.

It will probably improve our trade with other countries. The products built here are now cheaper than they have been, and tourist from other counties are more likely to visit. In the global commerce where parts are made and shipped from everywhere to anywhere, a few percentages in cost may a big difference.

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